The Thin Line Between Fraudulence and Legality
Do Your Own Due Dilligence
So I'm sitting here researching cheap bitcoin related equities as a potential investment for the next Bitcoin super cycle.
I found this company named Bitcoin Generation Inc. It is traded over the counter and there is no volume being traded so I didn't put to much thought into the company. But I was curious as to what the company was all about so I checked out the prospectus.
Prospectus
The prospectus says as much as I would assume it would say based on the name of the company. It states that the company was in the development stage which made me curious as to its growth potential. So I did a tiny bit of digging to see where there revenue streams are generated. I assumed they made money from mining crypto or something.
The caption at the bottom of the prospectus is somewhat comical. You will see why in a moment.
Revenue Breakdown
Upon scanning their financials, there are a couple troubling points that popped up. Aside from the massive debt load the company possesses, their revenue streams deviate from the companies prospectus.
Apparently their revenue comes from anything but crypto related activities. Unless the fraction of a percentage of revenue that comes from their subsidiaries. They could possibly be blockchain related but I doubt it. To me, this looks like a small pharma company that dabbles in combustion systems. Strange choice of a side gig for a pharma company, right?
Common Discrepencies
After seeing the revenue breakdown I haulted any further research as this is obviously not a good investment. Either the company is trying to mislead investors, or they can't complete a simple task of filing the correct prospectus. Whatever it is, It shows that the company is run poorly and should not be considered for investment in my opinion.
Discrepencies like this are common in shares traded on pink slips as well as ordinary shares. This is why it is always a smart idea to do your own due diligence and see what a company is all about before jumping in head first into an investment.
The examples of due diligence I provided are simple and the most basic aspects of due dilligence. Sometimes there is no need for a deep dive or complex analysis to save yourself from a shady investment.
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Give your investments time. Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Wind_Storm : Great advice! Every trader must follow a plan of research on any stock before beginning to trade it. Good luck to all!
MonkeyGee : Telling me about, there are so many fishy crypto and stocks. when I was young I didn't know any better. now I can it see it a mile away.
SpyderCallOP MonkeyGee: agreed
SpyderCallOP Wind_Storm: thanks
MuscMoo : this is the ceo on the right in his last job(literally)
SpyderCallOP MuscMoo: Hilarious! You can't even make this stuff up.
SpyderCallOP MuscMoo: Dude, the hotdog in the picture is fake. Apparently, this CEO has had a history of feeding bs to the public
MuscMoo SpyderCallOP: even the hotdog is fake? lol